S&P gives KfW digital issuance AAA

S&P said it gave an AAA issue rating to the recent €20 million two-year senior unsecured bond issued by KfW. This offering is KfW’s first in the form of a central register security under the German Electronic Securities Act.

For this offering, an entry in the electronic securities register replaces the physical certificate, making it more time efficient. However, clearing will be via a central intermediary not a blockchain, and all payments are made in euros, despite the instrument being labeled a digital issue, the agency said.

“We equalize the issue rating on the bond with our long-term issuer credit rating on KfW,” S&P said in a press release.

The outlook is stable.

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